Lack of demand in the year ahead will dampen commodity prices, according to a senior economist. The S&P GSCI TR index of commodity prices – which incorporates energy, agriculture, and both industrial and precious metals – has fallen by 2.2 per cent so far this year.
For John Greenwood, chief economist at Invesco, there are no short-term factors that will reverse this slide, only ones that will aggravate it. ‘Looking forward,’ he said, ‘in contrast to previous business cycle upswings it is highly unlikely that in 2013 any of the major economies will see a surge of liquidity or a sudden upswing in business activity of the kind that would be needed to generate a sustained surge in demand for commodities.’……………………………………….Full Article: Source

The chief executive of the London Metal Exchange said Wednesday financial regulation, particularly in Europe, poses a threat to a free market for commodities and to Europe’s market share in the sector. He also said quantitative easing programs from central banks is also disrupting commodity markets.
Giving the keynote speech at the Cesco Week dinner, Martin Abbott spoke on the topic of price formation, free markets and the threats to that freedom………………………………………..Full Article: Source

OPEC trimmed its estimate for global oil demand growth after the group’s crude production dropped last month. Worldwide oil consumption will rise this year by 800,000 barrels a day, or 0.9 percent, revised down from 840,000 last month, the Organization of Petroleum Exporting Countries said in its Monthly Oil Market Report.
Demand will rise to 89.66 million barrels a day in 2013 versus 88.87 million last year, OPEC estimated. The group’s output fell in March as Nigeria, Iran and Kuwait pumped less………………………………………..Full Article: Source

OPEC kept its world oil demand forecasts for 2012 and 2013 virtually unchanged yesterday, with China expected to contribute the most to growth while industrialized countries appeared to be headed for a decline.
The Organisation of Petroleum Exporting Countries (OPEC) expects world demand to reach 88.87 million barrels per day (mbpd) this year, slightly higher than its previous forecast in March of 88.83 mbpd. This would represent a hike of 770,000 bpd from the revised figure for 2011, the organization said in its latest monthly report………………………………………..Full Article: Source

The current oil price range of $100 to $110 a barrel is satisfying for both producers and consumers, Iran’s OPEC governor was quoted as saying Wednesday. The views suggest the organization is likely to keep its policies unchanged when it meets next month.
The governor’s remarks–made to Iran’s oil ministry website Shana by Muhammad Ali Khabiti, who represents Iran at the Organization of the Petroleum Exporting Countries–echoes similar views made by Saudi oil minister Ali al-Naimi in late March………………………………………..Full Article: Source

Production of oil from shale deposits will be too limited and costly to significantly harm the interests of established oil exporters, the adviser to Saudi Arabia’s oil minister said, in the most comprehensive response yet from OPEC’s top producer to an energy boom that is reshaping global markets.
However, Ibrahim al-Muhanna, a close adviser of Saudi Oil Minister Ali al-Naimi, acknowledged the psychological impact the U.S. shale boom is having on members of the Organization of the Petroleum Exporting Countries, most of whom have so far played down the significance of the phenomenon………………………………………..Full Article: Source

The global solar PV market is poised to break through the 100GW of installed capacity mark this year, according to new figures from the International Energy Agency (IEA). The IEA’s Photovoltaic Power System Programme this week published a new report, entitled Snapshot of Global PV in 1992-2012, based on data from 23 countries, including all of the world’s largest solar markets.
It confirmed that there is now at least 89.5GW of solar PV capacity recorded in these core markets, with an estimated 7GW of capacity in place in other markets. It concluded there is at least 96.5GW of capacity installed worldwide, meaning the market almost certainly reached the 100GW milestone during the first quarter of this year………………………………………..Full Article: Source

The turn in the gold price cycle is accelerating after a 12-year rally as recovery in the US economy gains momentum, according to Goldman Sachs Group, which reduced forecasts for the metal through 2014.
The bank cut its three-month target to $1,530 an ounce from $1,615 and lowered the six- and 12-month predictions to $1,490 and $1,390 from $1,600 and $1,550. Goldman recommended closing a long Comex gold position initiated on October 11, 2010 for a potential gain of $219 an ounce, analysts Damien Courvalin and Jeffrey Currie wrote in a report on Wednesday………………………………………..Full Article: Source

Gold futures on Wednesday dropped almost 2% as Goldman Sachs cut its price forecast on the metal, the dollar strengthened, equities rallied and Federal Reserve officials offered mixed signals on the duration of its bond-buying program. Adding pressure to prices, Cyprus officials reportedly said they plan to sell some gold reserves to contribute to the country’s bailout.
Gold for June delivery sank $27.90, or 1.8%, to settle at $1,558.80 an ounce on the Comex division of the New York Mercantile Exchange. That was the biggest one-day dollar and percentage loss for a most-active contract since November and the lowest closing level since April 4, according to FactSet data………………………………………..Full Article: Source

Deutsche Bank on Tuesday cut its 2013 gold price forecast, saying returns from the metal may be on course for their worst annual performance since 2000.
“The forces which have propelled gold returns higher over the past decade, namely a weakening U.S. dollar, falling real interest rates and a rising U.S. equity risk premium have all moved into reverse since the end of last year,” Deutsche Bank analysts wrote in a note to clients………………………………………..Full Article: Source

UBS said it remains upbeat on gold but nevertheless revised downward its 2013 forecast for the precious metal on Tuesday.
The bank also lowered its forecasts for most other base and precious metals, although the expected 2013 averages for all of the precious metals are above current prices. UBS says its preferred picks include gold and “niche” metals such as uranium, due to Japanese nuclear reactor restarts, and aluminum, based on an Indonesian mining ban………………………………………..Full Article: Source

The long-term “irreversible” trends I’ve discussed in detail in my upcoming book, $10,000 Gold, continue to develop. Many of the trends, such as debt creation and the movement away from the U.S. dollar, are accelerating and their consequences are appearing globally. Today we will interpret how these developments will likely affect the price of gold over the coming year and beyond.
Perhaps the most prevalent indication that something is amiss with the world’s economy is a sense of malaise that many have been experiencing — a distrust in the financial system and the government………………………………………..Full Article: Source

Below the streets of Lower Manhattan, in the vault of the Federal Reserve Bank of New York, the world’s largest trove of gold — half a million bars — has lost about $75 billion of its value. In Fort Knox, Ky., at the United States Bullion Depository, the damage totals $50 billion.
And in Pocatello, Idaho, the tiny golden treasure of Jon Norstog has dwindled, too. A $29,000 investment that Mr. Norstog made in 2011 is now worth about $17,000, a loss of 42 percent………………………………………..Full Article: Source

The swirling global economy has recently put significant pressure on gold and silver prices despite the continuing uncertainty that exists in Europe and elsewhere. Earlier this week, China announced figures for both its consumer price index and producer price index that suggest inflation expectations missed the mark fairly considerably. This has the effect of putting significant pressure on gold and silver prices throughout the year.
In the video below, Fool.com contributor Doug Ehrman discusses the potential impact of the report, how precious metals may be affected by the Chinese government, and developments in the world’s second-largest economy………………………………………..Full Article: Source

Growing negative market sentiment, along with rising warehouse stocks, mine supply and weakening demand, could weigh on copper prices, said a metals consultancy Tuesday.
Copper prices are weaker so far in 2013, and if selling pressure intensifies, Thomson Reuters GFMS said prices could fall to $6,500 a metric ton. However, the firm said it believes the red metal could spend most of the year within its recent broad trading range………………………………………..Full Article: Source

The assets of the Global ETF’s increased by 8.4 percent YTD and ended March with $1.82 trillion while the European ETF industry ended the month with €267.5 billion worth of assets, according to the report released by strategists at Deutsche Bank Market Research.
Deutsche Bank AG strategists Sascha Levitt together with Sebastian Mercado and Shan Lan, observed that cash inflows into equity last month were more than $15.7 billion and cash inflows into fixed income were more than $6 billion. They also noted a $-3.2 billion cash outflows from commodity ETP’s particularly gold products……………………………………….Full Article: Source

Investors in commodity exchange traded products (ETPs) unwound their holdings to jump on the equity market rally in March, resulting in total redemptions of $3.2 billion globally, according to BlackRock data.
Gold suffered an investor exodus for a third consecutive month, bringing first-quarter ETP outflows to $9.2 billion, but white metals - silver, platinum and palladium - escaped the sell-off, BlackRock, the world’s largest asset manager, said. Riskier, growth-related commodities such as industrial metals and energy also did poorly in March, as the Cyprus crisis stoked new worries over eurozone debt and economic growth………………………………………..Full Article: Source

Let me begin by stating that this article will, at no time, provides evidence or insight about how I believe the oil markets will behave in the future. Rather, my purpose is to provide current and potential energy investors a means to take advantage of glaring market inefficiencies given some prior understanding or opinion of the crude oil markets. As such, if you were looking for a hot oil tip, this article is not for you.
Still with me? Great, let’s get to it. I have previously written about why commodities ETFs are terrible. Let me assure you that this article by no means represents a reappraisal of that opinion………………………………………..Full Article: Source

When the euro was launched at the start of the century, it was meant to be a rival to the dollar. Turning it into the world’s trading and reserve currency was, unofficially at least, part of the reason for creating it.
Officials from Frankfurt and Brussels missed no opportunity to crow over every sign that the euro was gaining ground on the U.S. dollar as a global standard. Every time a central bank increased its holdings of euros, it was presented as a triumph for Europe, and a defeat for the U.S………………………………………..Full Article: Source

The record collapse in U.S. corn exports and shrinking domestic demand are leaving more grain in silos, spurring a bear market just eight months after drought drove prices to an all-time high.
Stockpiles will be 836 million bushels (21.2 million metric tons) on Aug. 31, or 32 percent more than the U.S. Department of Agriculture forecast last month, according to the average of 35 analyst estimates compiled by Bloomberg. Export sales from the world’s largest grower and shipper fell 54 percent in the year that began Sept. 1, heading for the biggest annual drop in government data that starts in 1960………………………………………..Full Article: Source

Shanghai will start a carbon-trading trial before the end of June as part of efforts to reduce energy intensity and emissions. The Shanghai Development and Reform Commission intends to issue regulations for the trading on the Shanghai Environment and Energy Exchange within this year.
Shanghai said last year that about 200 local companies, such as steel makers and hotel operators, will participate in the trial. They would receive their respective initial credits, based on historical data, for free………………………………………..Full Article: Source

Nascent carbon emissions-trading exchanges in several countries are increasingly looking at options to interlink with one another, which advocates say would offer investors long-term stability, increase revenues for the development of renewable energy and strengthen corporate support for climate policy.
Yet critics warn that so-called cap-and-trade systems are inefficient and create incentives for polluting industries to continue with business as usual. They also warn that the new systems in the United States are dependent on mechanisms that adversely impact on poor and indigenous communities in developing countries………………………………………..Full Article: Source